Regulations governing the affiliation of branches

The branch offices of organisations headquartered in a Member State of the European Union need not join the IPF even if they engage in a covered line of business, provided they maintain membership in an investor protection system specified in Directive 97/9/EC by the European Parliament and the Council (hereinafter: the ‘Directive’).

The branch office of an organisation pursuing covered lines of business in a third country need not join the IPF provided that the HFSA accepts that the branch is subject to investor protection ranked at par with the coverage provided in the Directive.

A branch office may join the IPF to ensure supplementary cover, even if it is not required to apply for membership.

If the maximum amount or rate of IPF coverage, or the scope of claims covered by the IPF is higher than those ensured by the investor protection system a branch office belongs to, the IPF will, upon request from the branch office, provide supplementary cover for the difference.

A branch office of an organisation headquartered in a Member State of the European Union must join the IPF if it engages in a covered line of business and is not subject to an investor protection system specified in Directive.

The branch office of an organisation pursuing covered lines of business in a third country must join the IPF if the HFSA is not convinced that the branch is subject to investor protection ranked at par with the coverage provided in the Directive.